Section 179 tax deductions

2025 Section 179 Tax Deductions in Alabama

Bill Smith Buick GMC wants to help you save money on your 2025 taxes.

Deduct up to 100% of the purchase price of a vehicle that you buy for business purposes. Buy a vehicle before year end, and deduct that from your business taxes

Keep reading to learn more.

How Do Section 179 Tax Deductions Work?

A Section 179 deduction helps offset the purchase cost of business property, including vehicles.

To claim a Section 179 deduction, you must:

  • Purchase the vehicle for business purposes.
  • Use the vehicle for business more than 50% of the time.
  • Only deduct the business use of the car or truck.
  • Take the deduction in the year you buy the vehicle and place it in service.
  • Understand Section 179 limits, such as the annual deduction limits.
  • Reduce your depreciable basis in the car by the amount of the deduction.
  • Not claim the standard mileage tax deduction in the same year.

Let us know if you have any questions. Our finance specialists would love to help.

PUT FEDERAL TAX DEDUCTIONS AND CREDITS TO WORK FOR YOU

You could get more tax benefits when you purchase the vehicles that you need. Both large and small businesses may be eligible to immediately deduct up to 100% of the purchase price of qualifying vehicles. Beginning in 2023, businesses that purchase qualifying electric vehicles may qualify for a federal income tax credit of up to $7,500.

ELIGIBLE VEHICLES

UP TO 100% OF PURCHASE PRICE

Large trucks, cargo vans and 10+ passenger vans - GVWR greater than 6,000 lbs.

  • Sierra 1500/2500/3500 - Standard and Long Bed
  • Sierra 3500 HD Chassis Cab Savana Cargo Van
  • Savana Passenger Van (10+ passenger seating only)
  • Savana Cutaway

UP TO $25,000
PLUS UP TO 80% OF THE REMAINING PURCHASE PRICE PLUS STANDARD DEPRECIATION DEDUCTION

Other trucks, passenger vans and SUVs - GVWR greater than 6,000 lbs.

  • Sierra 1500 - Short Bed (including Denali)
  • Yukon (including Denali)
  • Yukon XL (including Denali)
  • Acadia (including Denali)
  • HUMMER EV Pickup
  • HUMMER EV SUV
  • Canyon
  • Savana Passenger Van (all except 10+ passenger seating)

UP TO $20,000

All vehicles - GVWR 6,000 lbs. or less.

  • Terrain (including Denali)

FIRST YEAR VEHICLE DEPRECIATION LIMITS FOR 2023

Up To $25,000 Plus Up To 80% Of The Remaining Purchase Price Plus Standard Depreciation Deduction.

  • Enclave
  • Enclave Avenir

UP TO $20,200

  • Encore GX
  • Envision
  • Envision Avenir

Bill Smith Buick GMC

1940 2nd Avenue NW Cullman, AL 35055
Sales 866-734-1884
Service 866-732-9219
Parts 256-734-4472

Sales Hours

Sales
Monday 8:30AM - 6:00PM
Tuesday 8:30AM - 6:00PM
Wednesday 8:30AM - 6:00PM
Thursday 8:30AM - 6:00PM
Friday 8:30AM - 6:00PM
Saturday 8:30AM - 6:00PM
Sunday Closed

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